Mystery Shopping uncovers ‘ethnicity penalty’ on car insurance
Citizens Advice mystery shopping project suggests ‘shocking’ trend, affecting estimated 754,000 people in certain locations.
Proinsight recently partnered with research agency Europe Economics who have been working with Citizens Advice on a project with the aim to better understand whether people purchasing car insurance are treated with equality.
On behalf of Europe Economics and Citizens advice, we conducted 649 mystery shops for car insurance quotes using six different customer names across eight postcodes in England. The aim was to compare areas with a high white population with those where there was a high proportion of people of colour.
Our research uncovered that that quotes in areas with large proportions of black or south Asian people came in at least £280 higher than quotes in largely white postcodes, but that the ethnicity penalty was “up to £950 in some places”.